What is effective size in SAP IS-R-DM - Demand Management?

SAP Term: effective size

• Component: IS-R-DM

• Component Name: Demand Management

• Description: A standard measurement describing the product size value that corresponds to the product weight provided by the retailer.

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• Key Concepts: 
  Effective size is a term used in SAP IS-R-DM Demand Management. It is a measure of the size of a demand item that is used to calculate the total demand for a particular item. The effective size is determined by taking into account the quantity, unit of measure, and any other factors that may affect the total demand. 
  
  How to use it: 
  The effective size of an item can be calculated by multiplying the quantity of the item by its unit of measure. For example, if an item has a quantity of 10 and a unit of measure of 1, then the effective size would be 10. If the item has a quantity of 10 and a unit of measure of 2, then the effective size would be 20. 
  
  Tips & Tricks: 
  When calculating the effective size of an item, it is important to take into account any additional factors that may affect the total demand. For example, if an item has a quantity of 10 and a unit of measure of 1, but also has a discount applied to it, then the effective size would be less than 10. 
  
  Related Information: 
  The effective size is used in SAP IS-R-DM Demand Management to calculate the total demand for an item. It is also used in other areas such as inventory management and pricing. Understanding how to calculate effective size can help businesses better manage their inventory and pricing strategies.